Jailed diamantaire Nirav Modi faced a substantial setback as the High Court in London issued a summary judgment, directing him to pay $8 million to the Bank of India (BOI). A summary judgment is rendered when the court deems one party’s case lacking in merit or when the said party fails to appear.
The court decision arises from the legal dispute between the Bank of India (BOI) and Nirav Modi’s Dubai-based firm, Firestar Diamond FZE. BOI had initiated legal proceedings in the High Court of London, seeking to reclaim $8 million from the company—comprising $4 million in principal and an additional $4 million in accrued interest.
Court records reveal that the Bank of India (BOI) had provided a $9 million credit facility to Firestar. However, when BOI sought repayment in 2018, Nirav Modi was unable to fulfill the obligation. Given that Firestar Diamond FZE operates from Dubai, the summary judgment by the UK court is anticipated to streamline the recovery efforts, potentially resulting in the auctioning of Modi’s global properties and assets.
During the court proceedings, Tom Beasley, the barrister representing the Bank of India, effectively contended that Nirav Modi had no chance of success, rendering a trial unnecessary. It was revealed that while Modi had submitted a defense, he had neglected to respond to the bank’s application for a summary judgment.
Judge Jonathan Klein, overseeing the case, determined that despite Nirav Modi’s imprisonment, he had been provided with the opportunity to contest the claim made by the Bank of India. BOI solicitor Milan Kapadia expressed satisfaction with the judgment and anticipated the forthcoming steps in the legal process.
This judgment marks a significant milestone in the continuous legal struggles involving Nirav Modi, the embattled diamantaire currently serving a prison sentence in the UK. Modi faces additional challenges in settling his legal bills for his unsuccessful extradition case and has been making court appearances due to non-payment of over £150,000 in legal costs.
In the ongoing legal proceedings, the High Court’s judgment serves as a pivotal development, signifying a significant stride in the Bank of India’s endeavors to reclaim its funds and ensure that Nirav Modi is held responsible for his financial obligations.
